ACCA Strategic Professional · Advanced Audit and Assurance (International) · Professional appointments

Halden Partners has 14 audit partners. The firm's leadership wants to assign responsibilities under ISQM 1. The senior partner proposes that she be ultimately responsible for the system of quality management, and that the operational responsibility for the monitoring and remediation process be given to a newly qualified manager, Raj, who has no firm authority, on the basis that the senior partner will sign off the outcomes. Which statement is correct?

The proposal is not acceptable. ISQM 1 requires those given operational responsibility for areas like monitoring and remediation to have sufficient experience, knowledge, influence, authority and time. Giving the role to a junior manager without authority fails this, even with senior partner sign-off.

1. AThe proposal is acceptable because ultimate responsibility remains with the senior partner
2. BThe proposal is acceptable if Raj reports to the senior partner annually
3. CThe proposal is not acceptable because ISQM 1 requires the individual assigned operational responsibility for monitoring and remediation to have sufficient and appropriate experience, influence and authority, and timeCorrect
4. DThe proposal is not acceptable because ISQM 1 requires operational responsibility to be held by the engagement quality reviewer